2010-11 - Grasim

UltraTec
ech Cement Limited
SCHEDULE 21 (Contd.)
B. Notes on Accounts
1a. Contingent Liabilities not provided for in respect of:
Claims not acknowledged as debts in respect of matters in appeals
` in Crores
2010-11 2009-10
(a) Sales-tax liability 134.80 61.34
(b) Excise duty 159.52 53.00
(c) Royalty on Limestone/Marl 181.06 42.84
(d) Customs 2.82 0.11
(e) Others 177.90 26.03
1b. The Company has issued corporate guarantees in favour of Bankers / Lenders / Government
Authorities for its Subsidiaries and Joint Ventures; details of which are given below :
(i) Madanpur (North) Coal Company (Pvt.) Limited (JV) ` 3.65 Crores (Previous Year ` 3.65 Crores).
(ii) Bhaskarpara Coal Company Limited (JV) ` 4.00 Crores* (Previous Year ` Nil).
(iii) UltraTech Cement Middle East Investments Limited and its subsidiaries US$ 371 Mn (`
1,654.47 Crores) (Previous Year US$ Nil).
*Transferred pursuant to Scheme of Amlgamation of Samruddhi Cement Limited (SCL) with
the Company.
2. The Ministry of Textiles, vide its orders dated June 30, 1997 and July 1, 1999 has deleted
cement from the list of commodities to be packed in Jute bags under the Jute Packaging
(Compulsory Use in Packing Commodities) Act 1987. In view of this, the Company does not
accept any liability for non-dispatch of cement in Jute bags in respect of earlier years.
3. Estimated amount of contracts remaining to be executed on capital account and not provided
for (net of advances) ` 1,902.25 Crores (Previous Year ` 233.29 Crores).
4. Scheme of Amalgamation:
Pursuant to the Scheme of Amalgamation (“the Scheme”) of SCL a subsidiary of Grasim
Industries Ltd., the holding company, with the Company as sanctioned by the Hon’ble High
Courts of Bombay and Gujarat vide their orders dated June 11, 2010 and July 01, 2010
respectively; the entire business and all the assets and liabilities, duties and obligations of
SCL have been transferred to and vested in the Company with effect from July 01, 2010 (the
appointed date). The Scheme became effective from August 01, 2010.
The erstwhile SCL was engaged in manufacture and sale of Cement.
The amalgamation has been accounted for under the “Pooling of Interest” method as prescribed
by the Accounting Standard (AS) 14 on “Accounting for Amalgamations” notified under the
Companies (Accounting Standard) Rules. The scheme has, accordingly, been given effect to in
these financial statements as under:
(a) All the Assets, Liabilities, Debenture Redemption Reserve (DRR) and Capital Subsidy
Reserve (CSR) of SCL have been transferred to the Company at value appearing in the
books of accounts of SCL as on June 30, 2010. Excess of assets over liabilities net of
DRR and CSR, amounting to ` 4,851.85 Crores is credited to General Reserve.
(b) The cost of transfer of assets from SCL to the Company has been adjusted against the
General reserve.
(c) Upon effectiveness of the Scheme, the authorised Share Capital of the Company increased
to ` 2,800,000,000/- consisting of 280,000,000 equity shares of ` 10/- each.
41 ⊳